Centre clears ₹63,000 crore Rafale-M deal to bolster Indian Navy’s air power

Team Finance Saathi

    09/Apr/2025

What's covered under the Article:

  1. India clears ₹63,000 crore deal for 26 Rafale-M jets, including 22 single-seat and 4 twin-seat trainers for Indian Navy use

  2. The aircraft will operate from INS Vikrant and strengthen India's edge over Chinese naval fighters in the Indian Ocean Region

  3. Government also finalises ₹33,500 crore deal for 3 additional Scorpene submarines to be built at Mazagon Dock

In a major boost to India's naval capabilities, the Cabinet Committee on Security (CCS) led by Prime Minister Narendra Modi has cleared the long-awaited ₹63,000 crore deal for the procurement of 26 Rafale-Marine (Rafale-M) fighter aircraft for the Indian Navy. This move comes at a time when regional tensions in the Indian Ocean Region (IOR) are on the rise due to China’s expanding naval presence.

The deal is not only a massive step in India’s defence preparedness but also underlines its commitment to strengthen maritime security and project power in strategically important zones like the Strait of Malacca, South China Sea, and the Andaman and Nicobar Islands.


Details of the Rafale-Marine Deal

As per official sources, the Rafale-M deal includes:

  • 22 single-seat fighter jets

  • 4 twin-seat trainer variants

These 4.5-generation fighters, known for their superior dogfighting ability, advanced radar, electronic warfare systems, and combat-proven performance, will significantly enhance the combat capability of India’s carrier-based fleet.

Once the contract is formally signed, delivery will begin within 37 months and conclude by 65 months. The aircraft are expected to be deployed onboard the indigenously built aircraft carrier INS Vikrant, which became operational recently.


Why Rafale-M? Superiority Over China’s J-15

The selection of Rafale-M over its American counterpart (F/A-18 Super Hornet) was based on technical performance, compatibility with Indian Navy operations, and overall cost-effectiveness.

India’s primary naval rival in the region, China, operates the Shenyang J-15 from its aircraft carriers. However, experts highlight the Rafale-M’s advantages:

  • Lighter and more manoeuvrable

  • Equipped with cutting-edge avionics

  • More reliable in terms of take-off and landing from shorter carrier decks

  • Better electronic warfare systems and situational awareness

These aircraft will give the Indian Navy a quick-strike edge in high-pressure scenarios and extend its reach and precision across vast maritime domains.


The Need for Modernisation: Replacing the MiG-29K Fleet

Currently, the Indian Navy operates MiG-29K jets from its aircraft carriers INS Vikrant and INS Vikramaditya. However, these jets have faced:

  • Maintenance issues

  • Low serviceability rates

  • Operational limitations in carrier-based combat

The induction of Rafale-M will help replace and supplement these ageing fighters, ensuring more effective air dominance and power projection in the high seas.


Strategic Edge in the Indian Ocean Region (IOR)

With China establishing a firm naval presence in the IOR through ports and naval bases in Djibouti, Sri Lanka, and Pakistan, India's decision is a clear signal of assertiveness. The Rafale-M aircraft, being multirole fighters, will allow the Indian Navy to:

  • Perform interception, strike, reconnaissance, and electronic warfare missions

  • Monitor and dominate key sea lanes of communication

  • Provide rapid response to threats near Andaman and Nicobar Command

The enhanced air fleet complements India’s ongoing maritime strategy under the doctrine of “Security and Growth for All in the Region” (SAGAR).


Additional Firepower: Scorpene Submarine Deal Finalised

Alongside the Rafale-M deal, the government has also approved a ₹33,500 crore deal for the procurement of three additional Scorpene-class submarines. These diesel-electric submarines will be built by Mazagon Dock Shipbuilders Limited (MDL) in Mumbai in collaboration with France’s Naval Group.

Key highlights:

  • The first submarine is expected to roll out in six years

  • The remaining two will be delivered at intervals of one year each

  • The new subs will enhance stealth, underwater endurance, and strike capability

These additions will complement India’s existing Kalvari-class Scorpene fleet, improving its undersea warfare dominance in contested regions.


France-India Defence Ties Strengthen

France has emerged as a key defence partner for India in recent years. From the Air Force’s Rafale jets to the Scorpene submarines, and now the Rafale-M for the Navy, this cooperation marks a deepening strategic relationship.

French firms have consistently met Indian expectations in:

  • Technology transfer

  • Maintenance and logistics support

  • Training and indigenous participation

The deals also align with India’s Make in India and Atmanirbhar Bharat defence initiatives, with major assembly, testing, and training expected to happen domestically.


Boost to Indian Defence Industry

The procurement of Rafale-M and new submarines will have significant positive effects on India’s domestic defence industry:

  • Mazagon Dock Ltd (MDL) will play a key role in manufacturing submarines

  • Local vendors will be involved in components and systems integration

  • Training programs and maintenance infrastructure will be developed within India

This ensures long-term job creation, technical skill development, and defence ecosystem growth.


Conclusion

The approval of the ₹63,000 crore Rafale-M deal and the ₹33,500 crore Scorpene submarine project marks a watershed moment in India’s naval modernization journey. It reflects India’s strategic foresight in building a robust blue-water navy capable of countering regional threats and ensuring the security of crucial sea lanes.

With Rafale-Ms patrolling the skies above the Indian Ocean and Scorpene submarines operating silently below, India is making it abundantly clear that it is ready to secure its maritime frontiers with technology, strength, and strategic resolve.

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